Correlation Between McEwen Mining and Micron Technology
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Micron Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining McEwen Mining and Micron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Micron Technology, you can compare the effects of market volatilities on McEwen Mining and Micron Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in McEwen Mining with a short position of Micron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Micron Technology.
Diversification Opportunities for McEwen Mining and Micron Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Micron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and McEwen Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on McEwen Mining are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of McEwen Mining i.e., McEwen Mining and Micron Technology go up and down completely randomly.
Pair Corralation between McEwen Mining and Micron Technology
If you would invest 175,683 in Micron Technology on October 20, 2024 and sell it today you would earn a total of 43,572 from holding Micron Technology or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
McEwen Mining vs. Micron Technology
Performance |
| Timeline |
| McEwen Mining |
| Micron Technology |
McEwen Mining and Micron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Micron Technology
The main advantage of trading using opposite McEwen Mining and Micron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Micron Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Micron Technology will offset losses from the drop in Micron Technology's long position.| McEwen Mining vs. Grupo Sports World | McEwen Mining vs. Delta Air Lines | McEwen Mining vs. New Oriental Education | McEwen Mining vs. Verizon Communications |
| Micron Technology vs. Cognizant Technology Solutions | Micron Technology vs. Grupo Hotelero Santa | Micron Technology vs. McEwen Mining | Micron Technology vs. Verizon Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |